Hubscher bails from Te Kairanga Wines as profit margin evaporates

Saturday 17th July 2010

Te Kairanga Wines chairman and chief executive Peter Hubscher has quit the company amid a margin squeeze that wiped out profits and forced it to negotiate with its bank to for enough funds to continue operating over the next few months.

Director Roger Taylor has stepped in as chairman and acting CEO, the winemaker said in a statement.

“Although Te Kairanga has made considerable progress in achieving increased sales volumes, our selling prices have fallen to the point where margins are insufficient for us to be profitable,” Taylor said. “With the continued overhang of surplus wine, and reduced demand in export markets due to the global recession, this situation is expected to continue for some time.”

The company’s cash position “has become extremely tight” and it has begun talks with ANZ National Bank “with the aim of securing a way through the next few months as we try to find a viable longer-term strategy for the business,” he said. “All options are being considered.”

The difficulties “have led Peter Hubscher to resign,” he said.

The board of the Martinborough-based company is expected to report back on its strategy before the end of August.

The company’s shares, which are on the Unlisted market, last traded on March 26 at 60 cents. They traded at $4 in late 2007.

Businesswire.co.nz

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